Pre Session Commentary - July 13 2009

Today domestic markets are likely to open negative as majority of Asian markets have opened with blood bath. The US markets traded on a subdued note ahead of the economic key indicators to be announced on Tuesday. Investors across the world are trading on a cautious note due to lack of any specific driving news. In the domestic arena one could witness an early selling pressure followed by a range bound trade throughout the day.

On Friday, domestic markets closed with huge losses during the fag end of the trade. The markets opened in a subdued note and traded range bound until the last hour of the day’s trade. There was lack of guidance from other markets. However the markets picked up sentiments after the better than expected IIP data declared during the afternoon. The IIP data recorded at 2.7% in May 2009 as compared to a revised growth of 1.2% in April 2009. Manufacturing production surged 2.5% in May 2009 from a year earlier. Sectors like Oil & Gas, Power and CG were the top losers of the day as they fell by 3.28%, 2.54% and 2.28% respectively. BSE Midcap and Smallcap closed with losses of 1.92% and 1.79% respectively. Today domestic markets are likely to trade range bound with negative bias.

The BSE Sensex closed low by 253.24 points at 13,504.22 and NSE Nifty lost 77.05 points at 4,003.90. BSE Mid Cap and Small Cap closed with losses of 92.20 points and 95.22 points at 4,718.59 and 5,234.50. The BSE Sensex touched intraday high of 13,897.19 and intraday low of 13,418.39.

On Friday, the US stocks markets closed mixed. The trading was on a subdued note as investors were cautious ahead of the economic indicators to be announced on Tuesday by the Commerce Department. The Retail sales, CPI, Producer Price Index and Housing Starts data are awaited on Tuesday. As per forecasts done by economists polled by Reuters, June retail sales are forecast to rise 0.4 per cent, versus May''s increase of 0.5 per cent. Overall PPI is forecast up 0.9 per cent in June as against May''s gain of just 0.2 per cent. Further, June industrial production and capacity utilization data are expected from the Federal Reserve. US light crude oil futures for August delivery closed at $59.89 per barrel down by $0.52 on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) was low by 36.65 points at 8,146.52. NASDAQ index gained 3.48 points to 1,756.03 and the S&P 500 (SPX) fell by 3.55 points to close at 879.13 points.

Today major stock markets in Asia are trading low. Hang Seng is low by 356.96 points at 17,351.46. Shanghai Composite is low by 8.29 points at 3,105.64. Japan''s Nikkei is trading low by 115.72 points at 9,171.56. Strait Times is low by 26.35 points at 2,281.63.

On Friday, the partially convertible rupee ended at Rs 49.00/02, 0.62% stronger than its previous close at 48.70. The rupee lost its strenght due to drastic fall in local stock markets.

The FIIs on Friday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 2,345.30 Crore and gross debt purchased stood at Rs 429.20 Crore while the gross equity sold stood at Rs 2,636.90 Crore and gross debt sold stood at Rs 447.60 Crore. Therefore, the net investment of equity reported was Rs (291.60) Crore and net debt was Rs (18.50) Crore.

On BSE, total number of shares traded were 33.38 Crore and total turnover stood at Rs 4,598.24 Crore. On NSE, total number of shares traded were 80.52 Crore and total turnover was Rs 14,945.44 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 90784028 shares, followed by Suzlon Energy with 62917542, SAIL with 15213881, DLF with 14247211 and Tata Steel with 9799915 shares.

On NSE Future and Options, total number of contracts traded in index futures was 754522 with a total turnover of Rs 14,642.17 Crore. Along with this total number of contracts traded in stock futures were 505420 with a total turnover of Rs 13,433.07 crore. Total numbers of contracts for index options were 1354806 with a total turnover of Rs 28,523.94 Crore and total numbers of contracts for stock options were 43184 and notional turnover was Rs 1,291.95 Crore.

Today, Nifty would have a support at 3,929 and resistance at 3,971 and BSE Sensex has support at 13,211 and resistance at 13,423.